Corporate Transparency Act – Reporting Requirements for Certain Businesses in 2024

Published in Complex Rehab on January 23, 2024

Certain U.S. business types, including corporations and LLCs, are now required to submit reports regarding their ownership. Failure to submit these reports can result in both financial penalties and/or prison time. While this new reporting requirement is not specific to the DMEPOS industry, we know that several of our members’ companies will be subject to these new reporting requirements due to size and corporate structure, and we want to make sure those companies are aware of these new requirements and can take the necessary steps to avoid the monetary and criminal penalties associated with non-compliance.

The Corporate Transparency Act, enacted in 2021, held provisions that require certain business types to begin submitting reports in 2024 regarding the people who own, or directly/indirectly, control their business. These reports are called BOI (Beneficial Ownership Information) reports and will be submitted to an entity called FinCEN (Financial Crimes Enforcement Network). The reporting requirements begin in 2024 for some companies and 2025 for others. Failure to submit these reports if you are required to do so, or submitting false information within the reports, can result in 1) fines of up to $10,000 or a fine of $500 per day for each day of non-compliance, and 2) criminal penalties of up to two years in prison.

WHO IS REQUIRED TO REPORT?

U.S.-based corporations, limited liability companies (LLCs), and any other entities created by the filing of a document with a secretary of state or any similar office in the United States are required to submit BOI reports to FinCEN. There are, however, currently 23 specific exceptions regarding who has to submit reports, and those exceptions are outlined in section 1.2 of FinCEN’s published compliance guide found here. For example, one of the exemptions is for companies that have 20 U.S.-based employees and gross receipts totaling more than $5 million.

There will be no cost to businesses to submit these reports. They can be submitted electronically on FinCEN’s website.

WHEN ARE REPORTS REQUIRED TO BE SUBMITTED?

If your business is subject to the reporting requirements, the date your first report is due depends on when your company was created and registered to conduct business:

  • If your business was created or registered before Jan. 1, 2024, the deadline to submit your first report is Jan. 1, 2025.
  • If your business was created during calendar year 2024, you will have 90 days from whichever of the two dates comes first:
    • The date your company receives actual notice that its creation/registration is effective.
    • The date on which the Secretary of State, or similar office, first provides public notice of when the company was created or registered.
  • If your business was created after Jan. 1, 2025, you will have 30 days from whichever of the two dates comes first:
    • The date your company receives actual notice that its creation/registration is effective.
    • The date on which the Secretary of State, or similar office, first provides public notice of when the company was created or registered.

Below are some helpful resources to help you better understand these new requirements and whether your business is subject to them.

While this is not a DME industry-specific requirement, we know it will impact some of our members, and we want to make sure anyone who is subject to these requirements is aware of them and compliant with them. If you have any questions, please reach out to the VGM Government Payer Relations Experts at 800-642-6065.


TAGS

  1. vgm government

From Our Experts

Understanding the Value of ATP Certification and ATP Academy thumbnail Understanding the Value of ATP Certification and ATP Academy Becoming an ATP is a popular path often taken by occupational therapists (OTs), physical therapists (PTs), occupational therapy assistants (OTAs), physical therapy assistants (PTAs), and wheelchair technicians. With an ATP certification, one can both fill the needs of suppliers to sell certain wheelchairs and demonstrate that they have the skills and knowledge to complete their job as defined by the leading authority in the credentialing industry. Mobility Awareness Month: Celebrating the Impact of Mobility Providers thumbnail Mobility Awareness Month: Celebrating the Impact of Mobility Providers May is Mobility Awareness Month, a time recognizing the importance of mobility solutions, the professionals who provide them, and those who rely on them. U.S. Rehab's Live Tech Training and ATP Gateway Training Programs for 2025 thumbnail U.S. Rehab's Live Tech Training and ATP Gateway Training Programs for 2025 Our focus and one of our key drivers to help support our U.S. Rehab members is to continue to lead the way in complex rehab technology (CRT) training, offering Live Tech Training sessions and a new ATP Gateway Training Program in 2025. Marketing: Avoid Overspending thumbnail Marketing: Avoid Overspending Marketing your business effectively doesn't have to be costly. Adventure and Connections Await at Heartland 2025 thumbnail Adventure and Connections Await at Heartland 2025 This year's Heartland Conference promises an exciting lineup of activities designed to foster connections, inspire innovation, and create lasting memories. Accessories Just Got Easier to Bill thumbnail Accessories Just Got Easier to Bill CMS's decision to revise and expand E1028 and create three new HCPCS codes based on where it's being used on a wheelchair is a "win” for the industry. Heartland Conference Announces Extended Early Bird Special and New Refund Policy thumbnail Heartland Conference Announces Extended Early Bird Special and New Refund Policy Register for Heartland before April 30 to save $100. If circumstances prevent you from attending, we will fully refund your registration through June 1. Shaping the Future: A Roadmap to Success in 2025 thumbnail Shaping the Future: A Roadmap to Success in 2025 Jeremy Stolz, CEO, VGM Group, Inc., shares key areas of focus at VGM — principles that are essential for any organization striving to grow and thrive.